Ron Paul: We Must Stop the Fed from Causing More Harm

Later this month Congress will have an unprecedented opportunity to force the Federal Reserve to provide meaningful transparency to lawmakers and taxpayers. HR 459, my bill known as “Audit the Fed,” is scheduled for a vote before the full Congress in July. More than 270 of my colleagues cosponsored the bill, and it has the support of congressional leadership. But its passage in the House of Representatives is only the beginning of the battle, as many Senators and the President still don’t see the critical need to have a national discussion about monetary policy.

The American public now senses that the Fed’s actions, especially since 2008, are enormously inflationary and will cause great harm to the American economy in the long run. They are beginning to understand what so many economists still don’t understand, which is that inflation is a monetary phenomenon, and rising prices are merely a symptom of that phenomenon. Prices eventually rise when the supply of US dollars (paper or electronic) grows faster than the available goods and services being chased by those dollars.

This fundamental truth has been thoroughly explained by Milton Friedman and many others, so today’s Keynesian economists have no excuse for their claims that “inflation is under control.” Ordinary Americans don’t need a PhD simply to look at the Fed’s balance sheet and understand the staggering amount of money creation that has occurred in recent years. They know it will have harmful consequences for all of us eventually.

I’ve spoken at length about inflation, and how Fed money creation is effectively a tax. Every dollar created out of thin air dilutes the value of the dollars in your pocket and your savings in the bank. But the truth is that we are only beginning to see the results of the Fed’s dramatic increase in the money supply. As former Fed Chair Alan Greenspan himself explained last week to Larry Kudlow, most of the dollar deposits created by the Fed via successive rounds of “quantitative easing” remain on the balance sheet of Fed member banks. Because of very rational economic fears, banks are not lending, businesses are not expanding, and individuals are shedding debt. So, the trillions of dollars created by the Fed since 2008 remained largely undeployed. When those dollars eventually make their way into the world economy, prices across all sectors of the economy are likely to rise dramatically.

The true evil of inflation is that newly created money benefits politically favored financial interests, especially banks, on the front end. Over time, however, the net result of monetary inflation is always the devaluation of savings and purchasing power. This devaluation discourages saving, which is the key to capital accumulation and investment in a healthy economy. Inflation also tends to hurt seniors and those living on fixed incomes the most.

For decades the Fed has operated without any meaningful oversight whatsoever, resulting in the loss of savings, loss of purchasing power, and loss of quality of life for all Americans. It causes individuals and businesses to make bad decisions, misallocating their capital because market signals have been distorted. It causes financial ruin by engineering the inevitable boom and bust cycles that so many erroneously blame on capitalism. And it does all this in secrecy, to the benefit of the financial and political classes. It is time to Audit the Fed, as a first step toward ending its unchecked power over our money and economic fortunes.

(If you’ve found a spelling or transcription error, please notify us anonymously by selecting the misspelled text and then pressing Ctrl+Enter. Thank you!)

Ron Paul to WIN — or America to END 2012!
(there are no other options!)

All REAL Americans, and ALL People around the world— that believe in Liberty, Peace, Prosperity, Honesty, Truth, Goodness and Self-determination —are for Ron Paul.

President Paul wants to save our Nation and heal the World, and desires nothing for himself — making him a True Patriot (unlike the megalomaniacs that want The Presidency, so they can get a bigger pie, and engorge themselves further at the people’s expense — marking them as Leeches on the path to suck US dry)!

Ron Paul has awoken the Sleeping Giant that is We, The People! We are growing in numbers and our voice is no longer distant thunder — but a Roaring Storm that’s approaching and eventually will wipe out the PUPPETEERS that have stolen Our Nation!

We are the MANY, while the Criminals in Power, that want to control us, are the FEW (and their subhuman squeals are getting weaker)!

It should be this week — we need to have troops of Real Americans in front of Congress on that day, with Signs to let them know that ANYONE voting against it WILL BE HELD RESPONSIBLE as a wannabe destroyer of our Nation!

Only anti-Americans will vote against it — and they need to be aware that We, The People, will know them by NAME, and will not rest until they are removed from Congress!

French Canadian

Robin,

Okay, the video of the interview is already out.

Of course Alex takes the first 8 minutes to do an intro… lol… Alex just can’t shut up. And of course he interrupts his guests… it use to annoy before, but it doesn’t anymore, I got to know him. Alex is such a passionate person, he is very HYPER… his mind runs 1,000 miles an hour… he just can’t help it. Anyways, it doesn’t seems to hurt his show, since he is now the biggest talk radio show on the Internet.

So here is the interview and the question is: “What do think of the Batman shooting”:

“I may write a letter to the editor to point out the absurdity of this and as long as people live in fear, then the police state will continue.” (Robin)

This is a great idea, and you are dead right about the fear and the police State.

Tonight, I listened to a great interview with the two authors of the documentary film ” A Noble Lie” (Oklahoma bombing)). The interview is short, maybe 15 minutes. Alex only asked them one question: What they thought about the Batman shooting.?
You have to listen to their answers… brillant people. Tomorrow when it will be available, I will post it here. You will want to hear this… verry interesting and informative.

French Canadian

Sorry,

I’ll write this again:

“Did you see this great video? You have to see it. It is short, only one minute 15 seconds. Watch this armed senior citizen who his the hero of this video…lol… he sure did a great job!

French Canadian

Hookagold and Citizen,

Did you see this great video? You have to see it. It is short, only one minute15 seconds. Watch thi armed senior citizen who was the hero of this video…lol… he sure this a great job!

French Canadian,
The same thing went through my mind with respect to the comments made by Jesse Benton. Today again, we were told that we can’t discuss politics because as a volunteer I’m considered a teacher. This is the price you pay for federally subsidized lunches, and I won’t be volunteering next year, but I’m there for the kids many of whom are very needy. My husband wanted me to stop going there because he was furious, but I only have one more week, but I have already made my feelings known. I may write a letter to the editor to point out the absurdity of this and as long as people live in fear, then the police state will continue. My friend(a retired teacher) says she doesn’t agree with this(she was mad that I even questioned this in front of the other parents and kids), but she is afraid if we do not comply then we will lose the funding for the community.

9:14 am: "ooo wow nice attempt at a ad hom! Did the reds steal the election from you? Where is McCarthy when you need him? Am I right?" - JBrown

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